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 Sara Swanson

Canadian officials to Michigan Senate: Line 5 shutdown would wreck economy

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Gov. Gretchen Whitmer has given Enbridge until May 13 to shut down the Line 5 petroleum pipeline, calling the risk of an oil spill from the 68-year-old lake bottom pipes in the Straits of Mackinac 鈥渦nacceptable.鈥 (Bridge file photo)

By Kelly House (Bridge Michigan)

Keeping petroleum flowing through the Line 5 pipeline is imperative to the economy and energy security of Canada and the U.S., Canadian government, business and union representatives told a Michigan Senate panel on Tuesday.

During a 90-minute hearing that environmentalists decried as 鈥減olitical theater鈥 meant to undermine Gov. Gretchen Whitmer plan to shutter the Enbridge Energy pipeline, Republican leaders of the Senate Natural Resources and Energy and Technology committees invited the visitors to weigh in on everything from how a shutdown could impact Canada economy to how much Canadians value the Great Lakes

The three presenters 鈥 Bob Bailey, a member of the Canadian Provincial Parliament representing Sarnia-Lambton, Joseph Mancinelli, international vice president and regional manager of central and eastern Canada for the Laborers’ International Union of North America, and Rocco Rossi, president & CEO of the Ontario Chamber of Commerce 鈥 stressed that they share Michigan concerns about pipeline safety, but that shutting down Line 5 would harm businesses and consumers in Michigan and Canada.

In November, Whitmer gave Enbridge until May 13 to shut down the pipeline, calling the risk of an oil spill from the 68-year-old lake bottom pipes 鈥渦nacceptable.鈥 Her administration cited safety concerns on the pipeline that she said violate a 1953 easement that requires Enbridge to use 鈥渄ue care鈥 in operating its pipeline in the Straits.

Since then, Canadian government officials have launched a vigorous lobbying effort to keep Line 5 open, taking their complaints to President Joe Biden administration. They cite a 1977 treaty that specifies 鈥渘o public authority鈥 in the U.S. or Canada can impede the flow of petroleum products through cross-border pipelines.

Bailey said he wrote Whitmer in December to express his concerns about the shutdown. Speaking to Michigan lawmakers Tuesday, he cast keeping Line 5 open as a 鈥渨in-win鈥 for Michigan and Ontario.

Mancinelli told lawmakers that shutting down the pipeline would 鈥渉ave a devastating effect on a number of sectors and would destroy millions of workers鈥 jobs.鈥

He tied a potential shutdown to 鈥渘ationwide鈥 economic impacts, affecting everything from the auto industry and farming to the cosmetics industry that uses petroleum in makeup, to the sporting goods and pharmaceutical industries.

Those claims elicited protests from Democratic members of the committee, who argued a possible spill on the pipeline would bring far graver economic consequences for the region, and noted that the transition to clean fuels will bring new jobs to offset job losses in industries that currently rely on petroleum products.

When an anchor struck the pipeline (something that has聽happened more than once), said Sen. Marshall Bullock, D-Detroit, 鈥渨e avoided a catastrophe by a stroke of luck, and we鈥檙e operating as if that didn鈥檛 happen.鈥

What, he asked presenters, is Canada and Enbridge plan should a spill happen on Line 5?

Bailey said Enbridge officials would likely be willing to answer those questions in a future appearance before the committee.

Concerns about fuel shortages and economic harm have been a key point of contention in the debate about the pipeline fate, with Enbridge and its supporters arguing that a shutdown would raise fuel prices for Michigan residents and cut off supplies to regional refineries in Michigan, Ohio and Canada.

Some reports have estimated that any loss of transport capacity on Line 5 could be made up by increasing deliveries from other existing pipelines and transporting fuel by rail or truck, and Whitmer on Friday聽released a plan聽on Friday to offset propane losses from a Line 5 shutdown.

But Sen. Ed McBroom, R-Vulcan, who chairs the Senate Committee on Natural Resources and opposes shutting down the pipeline, opened Tuesday hearing by questioning the validity of Whitmer plan, saying it 鈥渄oes nothing鈥 to address the threat of a fuel shortage.

Environmentalists panned the hearing featuring 鈥渁n all-Canada witness list鈥 as 鈥減olitical theater鈥 from legislative leadership that has made no secret of its support for keeping the pipeline open.

鈥淭o get at the truth of the Line 5 threat in Michigan,鈥 said David Holtz, spokesperson for the anti-Line 5 coalition Oil & Water Don鈥檛 Mix, 鈥測ou would actually need to hear from credible people and organizations in Michigan who have analyzed and examined Line 5 and provided well-documented reasons for why Michigan priority around Line 5 should be Michigan.鈥

While most questions focused on giving Canadian officials a chance to air their concerns about a shutdown, some senators pressed Canada on the issue of the aging pipeline safety. Sen. Sean McCann, D-Kalamazoo, referenced the disastrous Line 6B disaster that spilled 843,000 gallons of crude oil from an Enbridge pipeline into the Kalamazoo River in 2010.

鈥淐an your government somehow guarantee that the continued operation of the existing pipeline will not result in a spill like the one Kalamazoo had in its backyard?鈥 McCann asked.

Bailey noted that Enbridge invested in safety measures after the Kalamazoo spill, and argued that 鈥渢he key鈥 to protecting the straits is to build the underground tunnel that Enbridge has proposed as a safer replacement for the existing lake bottom lines.

Speakers made minimal mention of the 1977 treaty during Tuesday hearing, although Rossi told lawmakers 鈥渨e fully expect the terms of that treaty to be upheld.鈥

Enbridge, too, has invoked the treaty in a federal lawsuit challenging the shutdown orders. The company has also argued that Michigan has no right to regulate pipeline safety, an area already covered by the federal Pipeline and Hazardous Materials Safety Administration.

One expert in international law told Bridge on Monday that Canada and Enbridge have a strong argument against the state. In general, said Steven Ratner, Bruno Simma Collegiate Professor of Law at the University of Michigan, federal treaties supersede state law.

鈥淭hey are the supreme law of the land under聽Article VI of the Constitution,鈥 he said, 鈥渁nd as a result, they do override any inconsistent state law.鈥

But聽the treaty聽has a few loopholes: For instance, it allows for pipeline flow to be 鈥渢emporarily reduced or stopped鈥 in the event of 鈥渁n actual or threatened natural disaster, an operating emergency, or other demonstrable need.鈥

Whether or not Whitmer shutdown order falls into that loophole, Ratner said, could depend upon how a judge interprets the word 鈥渢emporarily.鈥

Whitmer has repeatedly noted that Enbridge is free to continue pursuing a tunnel project that would replace the lake bottom span. But Enbridge is still awaiting permits for that project, and construction itself will take years.

So far, Whitmer and Nessel have not wavered from the shutdown order, and Biden administration officials have remained mum on their position.

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